SHANTABEN GANPATBHAI PATEL,SURAT vs. ITO, WARD 4(4), SURAT

ITA 1283/SRT/2024Status: DisposedITAT Surat08 September 2026AY 2008-099 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the land was agricultural land and not a capital asset, thus the addition for LTCG was not sustainable. For the compensation received for other assets, the Tribunal allowed a deduction for the cost of acquisition at 60% of the compensation amount.

What were the facts?

The assessee received compensation for compulsory acquisition of land. The Assessing Officer treated a portion as Long Term Capital Gain and another portion as income from other sources, as the land was considered a capital asset. The CIT(A) partly allowed the assessee's appeal.

What were the issues?

Whether the acquired land is a capital asset and whether the compensation received is taxable as capital gains or income from other sources. The eligibility for deduction under Section 10(37) for compulsory acquisition of agricultural land was also an issue.

Which sections of the Income-tax Act were involved?

Section 2(14),Section 10(37),Section 144,Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT BENCH, SURAT

For Appellant: Shri Sapnesh Sheth, Advocate
For Respondent: Shri Ashish Kumar, Sr. DR
Hearing: 17.06.2026Pronounced: 08.09.2026

PER : SUCHITRA KAMBLE, J M:

The appeal filed by the assessee is against the order passed by the Learned Commissioner of Income Tax (Appeals), [in short “CIT(A)”] dated 17.11.2014 for the Assessment Year (in short “AY”) 2008-09. 2. The assessee has raised the following grounds of appeal:

“1. On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) has erred in confirming the action of the Assessing Officer in reopening the assessment by issuing notice u/s 148 of the Act and thereby framing assessment u/s 144 r.w.s. 147 of the Act. Shantaben Ganpatbhai Patel

2.

On the facts and circumstances of the case as well as law on the subject, the Ld. CIT(A) h

The order continues below.

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